Saudi Authority for Industrial Cities and Technology Zones (Modon) has signed several contracts and agreements worth SR1.07 billion ($285 million) to localize the food and beverage industry in the kingdom.
With this the number of food factories in the kingdom has increased to 1171 with a total area of approximately 10 million sq m by the end of 2022.
The announcement came on the sidelines of Modon's participation in the Gulfood 23 exhibition, which concluded in Dubai yesterday (February 24), where it reviewed its industrial environment, services, and products that enable the localization of food industries to contribute to achieving the Kingdom's food security, as per the objectives of the national strategy for industry and the initiatives included in the National Industrial Development and Logistics Program (NIDLP) in line with Saudi Vision 2030.
Within the framework of its strategy to empower the industry and contribute to increasing local content in vital sectors to diversify the bases of the national economy and to contribute to the localization of 85% of the total demand in the food market in the kingdom, Modon signed an agreement with the Jordan Valley Company for Food Industries (Al Bayrouty) to establish a factory in the Second Industrial City in Jeddah, on an area of 15,000 sq m, with investments of about SR50 million, for the production of grains and legumes.
Modon also signed an agreement with the Kuwaiti Danish Dairy Company (KDD) to set up a new F&B commodities factory on an area of 100,000 sq m in Sudair City for Industry and Businesses at a total investment of SR375 million.
It also signed a contract for allocation of industrial land with Siniora Food Industries Company towards establishment of a factory on an area of 25,000 sq m at the second Industrial City in Jeddah for the production of frozen and chilled meat, with investments of SR140 million.
According to Modon, an agreement has been inked with the Dose Café company to allocate land for the construction of a ready-made F&B items factory in Sudair City for Industry and Businesses in addition to a tripartite agreement with Indel and Foodics companies that would stimulate supply chains in the food industry sector by providing technical linkage services between food manufacturers in Modon's industrial cities and supply chain of restaurants and hospitality in the kingdom.
It also signed a contract with IFFCO to allocate new industrial land in Dammam's Second Industrial City for the production of ketchup, mayonnaise, tomatoes, and bread derivatives, as part of the company's plans to expand its current investment activity in the food industries sector.
Recently, Modon signed agreements with several specialized companies, including the Arab Seara Food Industries Company, the investment arm in the Middle East and North Africa of Brazilian GPS group, a leading manufacture of meat products and derivatives.
The Saudi group has reached an agreement with the Alshaya Group, and Iffco to support its initiative to establish "food clusters" within the framework of the initiatives entrusted to Modon in the National Industrial Development and Logistics Program (NIDLP).-TradeArabia News Service